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A company allocates overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $990,000, and direct labor
A company allocates overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $990,000, and direct labor cost is $525,000. Determine whether there is over- or underapplied overhead using the T-account below.
Factory Overhead
Prepare the entry to close over- or underapplied overhead to cost of goods sold.
Journal entry worksheet
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